Asked by Daniel Klucker on May 02, 2024
Verified
A(n) ________ of a business is anything owed to creditors-that is,the claims of a company's creditors.
A) owners' equity
B) asset
C) liability
D) accumulated profits not paid in dividends
Liability
Anything owed to creditors—the claims of a company’s creditors.
Creditors
Individuals or institutions to whom money is owed by a debtor or borrower.
Business
Organizational entities that are involved in the trade of goods, services, or both to consumers, with the primary purpose of earning profits.
- Gain insight into the core ideas of assets, liabilities, and equity.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
C
Explanation :
Liabilities represent the debts or obligations of a business that arise during the course of its operations. They are the amounts owed to creditors.
Learning Objectives
- Gain insight into the core ideas of assets, liabilities, and equity.